WHAT IS INTELLECTUAL PROPERTY FINANCING?

Intellectual property financing is used to augment the collateral in an asset based loan, and cannot be used on its own. Although it is not as common as other asset types used in asset-based lending, this represents an great opportunity to borrowers with considerably unique and valuable patents or well established brand names. Intangible assets, including IP rights, can increase a company’s asset value, and understanding and valuing these assets will help top management to make informed investment and marketing decisions. Higher asset values may also help in negotiations with a company’s bank and facilitate access to credit, or help to negotiate cheaper interest rates on credit.

IP asset-backed securitizations are most common in the film and music industries, but the practice is increasing in the biotechnology and software industries. Some high profile examples of such transactions include the securitized royalty streams on the copyrights owned by famous musicians. For example:

In 1997, David Bowie issued 10-year asset-backed bonds on the basis of future royalties on publishing rights and master recordings from 25 pre-recorded albums, and raised US$55 million. The purchaser of the bonds gained the right to receive future royalties from Bowie’s albums until the principal plus 8% annual interest was repaid. At Green Capital Funding, LLC We work with many well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today's hard economic times.

Turn your intangible assets into cash NOW, and gain the working capital and the peace of mind your company needs to succeed. Get a Free Quote Today from Green Capital Funding, LLC.

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